Factor analysis of the liberalization of interest rate to the competitiveness of commercial banks

Banks are the core of the entire financial system and the center of financing. They play a pivotal role in the rational operation and healthy development of my country's economy. Nowadays, Interest rate liberalization has been almost completed. during this period the competition of Commercial banks is getting fiercer and fiercer, and also deposit and loan business, whose main profit source is interest income, is facing serious challenges. in order to increase competitiveness all of commercial banks are seeking new outlets. Therefore, it is of great practical significance to construct an index evaluation system for the competitiveness of my country's commercial banks and provide scientific countermeasures for commercial banks to enhance their competitiveness. This article aims to study the factors that affect the competitiveness of my country's commercial banks in the process of advancing interest rate liberalization, and how interest rate liberalization affects different types of commercial banks to varying degrees. This article first reviews the domestic and foreign scholars' relevant research on bank competitiveness, expounds the status of commercial bank competitiveness, and then analyzes the competitiveness factors of commercial banks through empirical methods. This paper selects the financial data of 14 listed banks in 2016 as the research object, uses SPSS26 software to perform factor analysis, and draws empirical test results, and then draws conclusions and recommendations.